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Nvidia makes semiconductor chips that are used to power AI.
I-Hwa Cheng/Bloomberg
Artificial intelligence may destroy humanity, but not before creating enormous wealth. Such is the paradox that now confronts investors after
Nvidia
’s
recent earnings report inadvertently created a large-scale ethics experiment on Wall Street.
On Tuesday, days after Nvidia (ticker: NVDA) stunned investors with a financial forecast that some have said augurs a new Industrial Revolution, AI experts released an ominous warning.
“Mitigating the risk of extinction from AI should be a global priority alongside other societal-scale risks such as pandemics and nuclear war,” according to a statement released by the Center for AI Safety that was signed by many in the field.
The warning has so far had little impact on investors.
Shares of Nvidia, which makes semiconductor chips that are used to power AI, have continued to surge ever higher. The excitement over AI is so intense that Nvidia’s stock’s extreme valuation is apparently of little concern. Some pundits and investors are even crediting the sudden emergence of AI for rescuing the broad market from getting dragged down by concerns of a potential recession, the debt-ceiling crisis, and any other bearish hobgoblins.
How hot is Nvidia? Many investors speak of the stock, and AI, with language rarely heard in generally staid financial circles. Christopher Rolland, Susquehanna Financial Group’s semiconductor analyst, told clients in a recent note that Nvidia’s earnings report was “an unfathomable beat as generative AI and accelerated computing inflect. It…
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